Incentives to Buy!

We have already mentioned in previous posts that it is a buyers market. Buyers are out and about getting great deals on real estate at this very moment. It also looks like this trend is not going away anytime soon. With this being the case, sellers are having to add incentives to make their property more appealing to prospective buyers. I am sure you have seen offers out there. Plasma TVs, lawnmowers, furniture, etc.. I recently read an article that detailed these incentives and they made some very good points. First, be leery of too good to be true offers. Many times these incentives are built into the asking price. This is not always the case and I recommend you do your homework and use common sense. They also pointed out that buyers want practical incentives. These are incentives they can use. A vacation package is nice, but not exactly the feature they are looking for in a home. In some ways this cheapens the way the property looks. Buyers really want their interest rate bought down by the seller or other value added incentives. Get the point! As a seller you should keep this in mind. As a buyer, you may want to think about what you want. Chances are you can get it!

Here is a list of the most commonly used incentives:

1. Price reduction - This is the most common. Everyone looks at the bottom dollar. If their budget is $200,000 and you are asking $225,000, a plasma TV is probably not going to make them go for it!


2. Paying points - This is a great tool. If you are willing to reduce the price of your home by $5000, think about using that money to buy down the buyers interest rate. This will allow them to get more bang for the buck. This also takes that person who has a $200,000 budget and lets them get into the house that is $225,000 for the same monthly payment! Remember, making the monthly payment comfortable for the buyer is key!


3. Down payment aid - Many times it is tough for buyers to come up with down payment money. If the seller carries a small down payment, a deal might be able to be struck!


4. Seller paid closing costs - This item is becoming more and more popular. Ask for this because you will most likely get it. If so, you can actually get into your dream home for "NO" money out of pocket!


5. Home Warranty - These are nice and can give a buyer the piece of mind they want. Just make sure it is a quality warranty and that all areas of concern would be covered.

These are the most common incentives used today, but there are others. Some choose to leave furniture or built in sound systems. There are all kinds of creative ways to entice buyers and as a buyer you can take advantage.

Happy Hunting!

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Professional Mortgage Group, Inc.

Your Columbia, Missouri Mortgage Broker